6.

Power Development

Energy

Electricity is a critical infrastructure for sustainable growth of the economy. Due to rapid industrialization and socio-economic development, the demand for power in the State grows rapidly and hence the extent of the increase in energy requirement over the Twelfth Five Year Plan depends on the elasticity of energy demand. Adequate provision of power supply has to be made to bridge the gap between demand and supply and make the State Power Surplus. As per the Vision Tamil Nadu 2023, five power generation projects are proposed with a capacity addition of 20,000 Mega Watts (MW); of this atleast 5000 MW would come up by 2017 to make good the shortage of peak power and energy shortage that Tamil Nadu faces at present. Some facets of the strategy for energy are Two port based Ultra Mega Power Projects of 4000 MW each b) Selective thrust for green power by maximizing investments in wind power to create incremental generation capacity of 5000 MW and 5000 MW in solar energy, Investment in transmission sector to create evacuation capacity for higher power generation capacity, Establishment of two Green field LNG Terminals with 5 MPTA capacity and city gas pipeline infrastructure for about 10 towns, Establishment of Smart grid system that enables the lower cost of energy to consumers and improve the reliability and security of the Electricity Grid. Tamil Nadu Electricity Board (TNEB) constituted under the Electricity Act 2003 has been reorganized by the establishment of a holding company, by the name TNEB Ltd. and two subsidiary companies, namely Tamil Nadu Transmission Corporation Ltd. (TANTRANSCO) and Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO) to carry out functions of generation, transmission and distribution of power in Tamil Nadu. The total installed capacity generation of Tamil Nadu as at 31.05.11 is 10237 MW which includes State (5677 MW), Central share (2861 MW) and Independent Power Producers (1699 MW) with 2.23 crore consumers. The average availability stands at 8000 MW,

whereas, the demand for power ranges from 10500 to 11500 MW. Due to high

energy demand, mainly because of rapid growth of industries and urbanization, the State has been facing power crisis with a shortage of 2500 MW 3500 MW. At present, the shortage is managed by resorting to power purchases, utilizing wind generation, and restriction and control measures. The per capita consumption in Tamil Nadu is 1040 units in 2010-11 as against 1080 units in 2009-10. The average consumption of energy per day is 230 Million Units (MU). The Eleventh Plan had targeted creation of 7808 MW of additional capacity and to reduce the Transmission and Distribution losses from 18% to 15%. The actual capacity addition of conventional energy source was only 256 MW. It is estimated that by the end of Twelfth Plan, the expected demand will be 18761 MW. Hence, a massive capacity addition programme is proposed to be undertaken through taking up new projects and expediting the completion of ongoing projects to meet the ever increasing demand. During 2011-12, an

additional capacity of 1973 MW is expected to be added through the completion of ongoing State and Central projects. For the year 2012-13, an additional The total quantity of coal

capacity of 2157 MW is proposed to be added.

required for TANGEDCOs four Thermal Power Stations with a capacity of 2970 MW is 16 Million Tonnes Per Annum (MTPA). Due to severe scarcity of coal, the coal supplied by Government of India through Coal India Ltd., is 13.5 MTPA only, The balance requirement of 2.5 million tones of coal is met by the coal blocks viz., Gare Pelma Sector II in Chattisgarh and Mandakini-B in Odisha for thermal power generation. A sum of 1500 crore is provided in the Budget Estimates 2012- 2013 as share capital support for new power projects. The other thrust

areas in the Power Sector are improvement of the transmission and distribution system to reduce Transmission and Distribution (T&D) losses and promotion of energy conservation. Transmission & Distribution The TNEB has a network of 1343 substations of various voltage categories, 1.77 lakh ckt. kms. of Extra High Tension (EHT)/ High Tension (HT) lines and 2.05 lakh distribution transformers. During 2010-11, 42 substations

and 101 nos. power transformers and auto transformers have been commissioned and 931.82 ckt. kms. of EHT lines were added. During 2011-12, it was proposed to establish 55 substations and 300 ckt. kms. of EHT lines. For the year, 2012-13, it is proposed to establish 60 substations and 1500 ckt kms. of EHT lines. The Aggregate Technical and Commercial (AT&C) losses have considering the units generated, the units sold out,

been estimated as 18.5%

revenue realized and by computing the consumption of agricultural and hut services. Steps are being taken to reduce the AT&C further to 18.1% during 2011-12 by undertaking several network improvement works and anti power theft measures. It is proposed to strengthen the power transmission network at a cost of about 3573 crore through the financial assistance of Japanese International Co-operation Agency (JICA). The GOI has launched Restructured APDRP Scheme to bring down the AT&C losses below 15% and provide quality and reliable power supply to the consumers. It is proposed to achieve the above by bringing High Tension, Low Tension ratio by introducing high voltage distribution system with small capacity transformers, erection of new substations and Extra High Tension link lines and installation of Low Tension fixed capacitors, strengthening of distribution lines, etc. The above project has been taken up in two parts where Part A includes the projects for establishment of baseline data and IT applications for energy accounting/auditing and IT based consumer service centres. GOI has sanctioned Detailed Project Reports (DPR) for 110 towns of Tamil Nadu for implementation of IT at a total cost of 417 crore. In addition, a sum of 182.17 crore has been sanctioned for SCADA and DMS implementation in seven eligible towns in the State viz., 1) Chennai, 2) Madurai, 3) Coimbatore, 4) Tiruchy, 5) Salem, 6) Tirunelveli and 7) Tiruppur (having population of more than 4 lakh as per 2001 Census and annual input energy of the order of 350 MUs). The above scheme is to be completed by 30.6.2012. Part B scheme work consists of regular distribution strengthening and improvement work, which involves implementation of High Voltage Distribution System to reduce the losses to the maximum extent

possible. Part-B schemes for 87 towns have been sanctioned in five slots for a total of 3279.56 crore. The above scheme is to be completed by February 2014, of which, sanction has been accorded and works are expected to be taken up shortly. Rural Electrification Rural Electrification is the process of bringing electrical power to the rural and remote areas. The State of Tamil Nadu had been declared 100% electrified in 1987 as all the 15822 inhabited villages have been electrified. To achieve the goal of electrification of all rural households during XI plan period, Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) was launched. With the implementation of this scheme in Tamil Nadu, all the Below Poverty Line households will get service connections, besides that 100% of the population (16.92 lakh households) will get access to electricity. Under the Rajiv Gandhi Grameen

Vidyutikaran Yojana, the State has obtained sanction for schemes in respect of 26 districts for an amount of 447.41 crore towards 100% electrification of rural households. The RGGVY works in all the 26 districts have been completed, thereby providing electrification to all the households. Implementation of this scheme in the remaining 3 districts of Nilgiris, Tirunelveli and Dharamapuri are likely to be completed by 2012 electrifying all the rural households. Energy Conservation The State has been undertaking energy conservation measures. As of now, Government have launched a scheme in the domestic sector to replace energy inefficient incandescent lamps with energy efficient Compact Fluorescent lamps (CFL) in the State, which saves 80% of energy consumption. As a major initiative to promote power savings, Compact Fluorescent Lamps (CFL) will be provided without cost to 14.62 lakh huts to replace incandescent lights at a cost of 14.62 crore and this is expected to result in a saving of 45 megawatts of power. The Government of Tamil Nadu will initiate action to implement the Energy Conservation Building Code in commercial buildings and certain categories of major building complexes based on their

energy consumption.

At 30% energy savings, this has the potential to save

around 3 MW per 10 lakh square feet area. Initiatives are being taken to strengthen the transmission infrastructure for evacuation of wind energy Further, the State owned TANGEDCO (Tamil Nadu Generation and Distribution Corporation) is in the process of replacing the old agricultural pumpsets with energy efficient ones in five years that would lead to saving of energy. These energy saving schemes are cost effective, low energy

consumption and thereby help to reduce the energy deficit. Plan Outlay for 2012-13 An outlay of 1515.36 crore has been approved for the year 2012-13 under State funds for the Power Development sector. In addtion to the State plan outlay, an amount of 1237.59 crore is expected from Centrally Sponsored schemes.

Renewable Energy Tamil Nadu has rich potential of tapping renewable energy. It is the leading State in generation of wind energy and has rich sources of generating solar energy. Tamil Nadu Energy Development Agency (TEDA) is the nodal agency to promote the use of new and renewable sources of energy and to implement renewable projects in Tamil Nadu. As on 31.7.2011, the total installed capacity of power generation from renewable sources in the State is 7012 MW, including wind (6143 MW), Cogeneration (610 MW), Biomass (162 MW), Small Hydro (90 MW) and Solar power (7 MW). This accounts for about 36% of the total installed capacity from renewable energy sources in India. This also represents 40% of TNEBs grid capacity. During 2010-11, an additional capacity of 1315 MW of renewable energy has been added to the grid. The total installed capacity of wind energy is 6143 MW, which constitutes 47% of the total capacity in India. The capacity addition of wind energy targeted to be added to the grid during 2010-11 was 645 MW, but achieved an all time high of 997 MW. To evacuate wind power, private developers have been

permitted to establish new 230 and 110 KV sub stations and erection of additional transformers at existing sub-stations. The State has a very good solar potential with 300 clear sunny days as it receives very high solar radiation. A Solar Photo Voltaic power plant with a capacity of 5MW has been connected to the grid. During 2011-12, it has been proposed to provide Solar Power Home Lighting in 3 lakh Green Houses. Initiatives taken during 2011-2012 for provision of solar lights to the houses constructed under the Chief Ministers Solar Powered Green Houses scheme and the scheme for the provision of street lights with solar power will be continued. During 2012-2013, another 60,000 green houses will be provided with solar lights and 20,000 more street lights will be energised with solar

power . Efforts are taken to establish co-generation plants in 14 Co-operative and Public Sector Sugar Mills for a capacity of 213 MW. Under the Generation based Incentive Scheme of Ministry of Non-Renewable Energy (MNRE), 6 MW capacity private power projects are under implementation.

The State is in the process of formulating a separate policy for Renewable Energy to encourage private investment in renewable energy and Solar power policy to harness the solar potential. Promotion of solar energy parks, coastal and offshore wind energy farms and biomass thermal projects will be supported by the Government as long term measures to meet our energy needs. TEDA has been taking promotional activities such as facilitation of wind power development by undertaking wind resource assessment, setting up of demonstration wind farms, encourages investment through attractive power purchase policies, organises awareness programmes on the use of renewable energy and energy conservation and energy efficiency, undertaking biomass assessment studies and encourage private sector investment in biomass power projects and facilitating setting up of Grid Interactive Solar Power Plants. Plan Outlay for 2012-13 An outlay of 1.05 crore is approved for Renewable Energy Sources sector for the year 2012-13.